Insights articles https://www.gam.com Risk Factor: Beyond the Linear Approach https://www.gam.com/en/insights-content/2017/we-think/risk-factor-beyond-the-linear-approach/ For many investors with traditional long-only equity and bond portfolios, the era following the Global Financial Crisis (GFC) has proved a very lucrative one. Risk assets, such as equities and bonds, have been driven relentlessly higher, largely by central bank liquidity. This has been an indiscriminate rally, or 'a rising tide that has lifted all boats'. As a result, equity and bond markets per se look expensive. 2017-10-19T00:00:00 MBS: Navigating Pre-, Post- and Crises Periods https://www.gam.com/en/insights-content/2017/thematic/mbs-navigating-pre-post-and-crises-periods/ For many people, the Global Financial Crisis (GFC) has yet to ‘celebrate’ its 10th anniversary. Amid all the strenuous denials from economists, central bankers, politicians and finance officials, it can be difficult to objectively pinpoint the one single event that signalled the meltdown and mayhem. 2017-10-18T00:00:00 Outlook: Hitting the Target https://www.gam.com/en/insights-content/2017/macroeconomics/outlook-hitting-the-target/ Although not ‘all weather’, the standard asset allocation approach has served investors well. However, it is time for a rethink: the 60-40 model of a balanced portfolio of stocks and bonds no longer looks fit for purpose. GAM’s Head of Investment Solutions and Chief Economist Larry Hatheway explains why. 2017-10-17T00:00:00 Building on Firm Ground https://www.gam.com/en/insights-content/2017/thematic/building-on-firm-ground/ UK and European economies are on a relatively solid footing, says Jon Rickert, investment director at GAM, and private commercial real estate lending will prosper. 2017-10-12T00:00:00 Fund Manager Portrait – Tim Haywood https://www.gam.com/en/insights-content/2017/our-managers/fund-manager-portrait-tim-haywood/ Meet Tim Haywood, Investment Director at GAM and business unit head for fixed income, responsible for the absolute return bond family of funds as well as various long only fixed income mandates. 2017-10-11T00:00:00 Low Index Volatility: Great Active Opportunities? https://www.gam.com/en/insights-content/2017/investment-opinions/low-index-volatility/ Kenneth Liew, Portfolio Manager, Multi Asset Portfolio Solutions takes a look at low index volatility, important underlying trends – and the impact on portfolio construction. 2017-10-05T00:00:00 Is China in a ‘Sweet Spot’? https://www.gam.com/en/insights-content/2017/thematic/is-china-in-a-sweet-spot/ Michael Lai, investment director explains how China is stemming the flood of overseas investment and dealing with debt, to maintain economic growth. 2017-10-04T00:00:00 Active Management Fights Back! https://www.gam.com/en/insights-content/2017/investment-opinions/active-management-fights-back/ Over the last few years, competition has increased in the asset management industry, fees have been under pressure and performance among active managers has, in aggregate, been disappointing. It wasn’t always this way. And we think it won’t be this way as we look forward. 2017-10-02T00:00:00 Sustainable Investing – Time For A Holistic View https://www.gam.com/en/insights-content/2017/thematic/sustainable-investing-time-for-a-holistic-view/ Karl Herzog and Thomas Funk from the Swiss equities team explain how they screen companies based on a comprehensive list of sustainability criteria. Their goal is as simple as it is ambitious, aiming to identify the long-term winners in an increasingly complex and competitive environment. 2017-09-29T00:00:00 Snap Election in Japan: An Investor’s View https://www.gam.com/en/insights-content/2017/regional/snap-election-in-japan-an-investor-s-view/ On Monday Prime Minister Shinzo Abe announced his plans to dissolve the lower house of Japan’s parliament on 28 September and to call a snap election in October. What will be the impact for markets against the backdrop of encouraging fundamentals but prevailing tensions with North Korea? 2017-09-28T00:00:00 Larry Hatheway on Markets - September 2017 https://www.gam.com/en/insights-content/2017/macroeconomics/larry-hatheway-on-markets-september-2017/ Chief economist and Head of GAM Investment Solutions, Larry Hatheway, discusses the outlook for global equity and bond markets, his expectations for monetary policy and the biggest risks to investors in the next quarter. 2017-09-27T00:00:00 Absolute Returns in all Environments https://www.gam.com/en/insights-content/2017/thematic/absolute-returns-in-all-environments/ Tim Haywood, investment director for absolute return fixed income strategies, shares his views on the current macroeconomic environment and opportunities in the bond markets. 2017-09-21T00:00:00 A Sustainable Approach to Generating Returns https://www.gam.com/en/insights-content/2017/thematic/a-sustainable-approach-to-generating-returns/ Gianmarco Mondani, CIO of the non-directional equity team in Lugano, explains the academic background behind his strategy, which employs a fundamental, earnings revision-based approach, incorporating both valuation and momentum metrics, and aims to deliver favourable outcomes in the majority of calendar years. 2017-09-19T00:00:00 Big Data and Investing https://www.gam.com/en/insights-content/2017/thematic/big-data-and-investing/ Investment managers are using big data and artificial intelligence to enhance the diversification and risk/return potential of portfolios. 2017-09-14T00:00:00 Convertibles: A Compelling Solution https://www.gam.com/en/insights-content/2017/thematic/convertible-bonds/ Convertible bonds’ combination of cheap valuations and equity exposure would provide a very attractive asymmetrical return profile in a rising interest rate environment. Jonathan Stanford, senior fund manager, non-directional equity, explains. 2017-09-08T00:00:00 Why Stocks Can Shrug Off Bonds https://www.gam.com/en/insights-content/2017/investment-opinions/why-stocks-can-shrug-off-bonds/ This year, equity markets have broadly advanced, despite significant gyrations in bond yields. To some, that seems odd. How can stocks ignore bond moves, in particular episodes of rising yields? Chief economist Larry Hatheway explains why. 2017-08-29T00:00:00 Luxury: Q2 Results Confirm Solid Trend https://www.gam.com/en/insights-content/2017/thematic/luxury-q2-results-confirm-solid-trend/ GAM’s Scilla Huang Sun reflects on the Q2 reporting season in the luxury segment of the equity market and identifies some interesting themes worth focusing on 2017-08-23T00:00:00 Harvesting Merger Arbitrage Premiums https://www.gam.com/en/insights-content/2017/thematic/harvesting-merger-arbitrage-premiums/ In the prevailing environment, investors are finding fewer and fewer sources of meaningful yield with low volatility from the fixed income universe. GAM’s Roberto Bottoli describes a potentially unconsidered alternative with a return profile offering a low correlation to traditional investment strategies. 2017-08-17T00:00:00 Larry Hatheway on Markets - August 2017 https://www.gam.com/en/insights-content/2017/macroeconomics/larry-hatheway-on-markets-august-2017/ Chief economist and Head of GAM Investment Solutions, Larry Hatheway, discusses how global equity and bond markets are performing, the outlook for the dollar and whether economic expansion in emerging markets is sustainable. 2017-08-15T00:00:00 Japan: Time to Refocus on Earnings https://www.gam.com/en/insights-content/2017/thematic/japan-time-to-refocus-on-earnings/ As featured in Investment Week, Ernst Glanzmann and Reiko Mito, Japanese equity managers at GAM, discuss why the reporting season in Japan will refocus investors' attention on earnings. 2017-08-10T00:00:00 Sterling: Pounded Down Far Enough? https://www.gam.com/en/insights-content/2017/investment-opinions/sterling-pounded-down-far-enough/ The British pound has been the subject of repeated doom-mongering since the Brexit referendum more than a year ago. Joachim Corbach, GAM’s Head of Currencies and Commodities, questions whether there really is more material downside for sterling from the prevailing depressed levels. This article originally featured in Fund Strategy. 2017-08-08T00:00:00 Normalisation: A Turning Point? https://www.gam.com/en/insights-content/2017/investment-opinions/normalisation-a-turning-point/ Tim Haywood, investment director for fixed income, says that with policy normalisation from central bankers in both Europe and North America driving bond yields aggressively upwards, June may be remembered as a turning point for fixed income markets. 2017-08-04T00:00:00 MBS: Size, Depth & Liquidity https://www.gam.com/en/insights-content/2017/thematic/mbs-size-depth-and-liquidity/ With a low volatility profile and steady yield, returns from mortgage-backed securities beat other medium and high-quality fixed income securities over time. The market has had a radical reform since it took a hit during the financial crisis; those who seek a truly diversified global fixed income strategy should investigate the revised offering. Tom Mansley and Garry Singleterry explain why investors may find that the opportunity is too good to miss. 2017-08-01T00:00:00 Larry Hatheway on Markets - July 2017 https://www.gam.com/en/insights-content/2017/macroeconomics/larry-hatheway-on-markets-july-2017/ Chief economist and Head of GAM Investment Solutions, Larry Hatheway, discusses the outlook for global equity and bond markets, his expectations for the remainder of the second quarter earnings season and monetary policy over the next quarter. 2017-07-27T00:00:00 India: On the Cusp of a Multi-year Bull Market? https://www.gam.com/en/insights-content/2017/investment-opinions/india-on-the-cusp-of-a-multi-year-bull-market/ Madhav Bhatkuly considers recent milestones for the Indian economy, including the implementation of the Goods and Services Tax bill and the rapid transformation of the financial services sector, and explains why Indian equities could be on the cusp of a multi-year bull market. 2017-07-25T00:00:00 Why Active? https://www.gam.com/en/insights-content/2017/investment-opinions/why-active/ As featured in Citywire Wealth Manager, Larry Hatheway, chief economist and head of GAM Investment Solutions, explains how active and passive strategies play a part in GAM’s multi-asset portfolios. 2017-07-19T00:00:00 The David and Goliath Aspects of China's A-share Market https://www.gam.com/en/insights-content/2017/regional/the-david-and-goliath-aspects-of-chinas-ashare-market/ Tim Love, investment director for emerging market equities, considers the significance of the inclusion of China A-shares in the MSCI Emerging Markets index. 2017-07-13T00:00:00 The Early BRRD https://www.gam.com/en/insights-content/2017/thematic/the-early-brrd/ Anthony Smouha and Gregoire Mivelaz, who co-manage a number of GAM’s credit strategies, draw considerable encouragement from the practical application of new regulatory mechanisms, which have been designed to curb contagion in the financials sector and thus prevent idiosyncratic issues from morphing into systemic events. 2017-07-11T00:00:00 The Value Renaissance https://www.gam.com/en/insights-content/2017/thematic/the-value-renaissance/ Value investing is the art of buying stocks that in general appear to be priced more cheaply than the market averages. As featured in Money Observer, John Lambert, Investment Director, explains why he believes the time is approaching when value investors will be rewarded. 2017-07-06T00:00:00 The Fed May Not Have Investors Backs For Much Longer https://www.gam.com/en/insights-content/2017/investment-opinions/the-fed-may-not-have-investors-backs-for-much-longer/ The US equity market’s implicit guarantee against instability might be coming to an end. Julian Howard, Head of Multi Asset Solutions at GAM considers why now, and how investors can mitigate the risks and reposition for more reliable income. 2017-07-04T00:00:00